Date: December 12, 2018
Consolidated Bakeries Jamaica Limited (PURITY) held its Annual General Meeting today December 12, 2018. The meeting commenced with Managing Director and Chief Executive Officer, Mr. Anthony Chang, who did the usual welcoming and a presentation on the Company’s financials and operations. Mr. Chang indicated that the Company encountered many challenges in 2017 due to increased competitor activity, shifting consumer preferences and delays in implementing the new products line (a flexible conveyor system that prepares dough). However, “Purity’s strong net cash and cash equivalents position allowed the Company to cope,” Mr. Chang stated.
For the 2017 financial year, revenues closed at $862.6 million, a 2% decline year on year. Sales were affected which translated to a $40.1 million net loss for the period under review. Purity mentioned that, “The Company’s core bread products maintained its market share, notwithstanding, a slight dip in the overall bread market.” Notably, volumes are still higher in many parishes over last year.
The Company is focused on providing quality products in order to boost and maintain consumer confidence in their brand. As such, “during the year, the Company clean their products of some preservatives and additives that are commonly used within the baking industry,” according to management. Additionally, it was further stated that, “Consumers are becoming more health conscious, therefore Purity has reduced the sugar content of several products and removed bromine and bleached flour throughout the product line.”
Way Forward:
- Adjustments to business operations are being implemented to recover profits and improve working capital
- Expand distribution to grow top line
- To increase Purity and Miss Birdie brand recognition and visibility
- Launch new products in the marketplace with a focus on bread and bun innovations
- Placing messages and Ads on Traditional, Digital and Social Media
- Increase in-store visibility with strong shelf and gondola branding (brighter yellow packaging)
- Increase on the ground marketing activities (Special Promotion, Denbeigh and Expo)
- Position the brands as the ‘Healthier Alternative’
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